Originally Posted by
moxfyre
Where does all the money from the 1-2 hour $80 tuneup at the LBS go (that's the last time I ever had a shop do a repair for me)?? It doesn't even include any materials at all.
Assuming $8 an hour for the mechanics = $16. Let's say when you factor in tools and shop space and rent and such, double that, so $32. Are the owners marking it up by a factor of 2.5? Seems exhorbitant to me...
(Please note, I don't mean to disparage good bike mechanics. In fact I think they should be paid better. I'm just wondering where all the money goes if they're paid so poorly...)
From what I've seen and read, most shops use the good margins of service to offset the crappy margins on the bikes themselves. Clothes and most accessories also have better margins than the bikes, but service margins are what keep many shops alive. That said, I think paying well for good service people ought to bring more service work to the shop.
Happy New Year! (a bit bored with the ball drop, so posting here).